21st Century Fox Given Clearance To Buy Sky By British Government

21st Century Fox Given Clearance To Buy Sky By British Government

21st Century Fox Given Clearance To Buy Sky By British Government

Even as 21st Century Fox shareholders prepare to look at Disney's latest bid, Comcast is getting ready to increase its offer.

Comcast said its cash offer has been recommended by Sky's independent committee of directors and that it has committed the financing required for the deal.

The £14 per share offer is 12pc higher than the £12.50 offered by Comcast in April and 82pc higher than the stock's value before Fox made its first offer in November 2016.

On Wednesday the battle for Sky escalated, with Comcast offering a £26bn deal less than a day after 21st Century Fox increased its offer to £24.5bn.

That topped Comcast's previous £22bn offer and is part of an escalating war between media giants including Disney.

'It seems that sky is caught in a bigger struggle between United States media groups with deep pockets who want more global exposure and are ever more aware of competition from newcomers such as Amazon and Netflix, ' he continued.

"We continue to believe Comcast ultimately wants both Sky and Fox assets, and that Comcast will come in with a higher bid for FOX in the coming weeks (prior to the 7/26 FOX shareholder vote)", Janedis wrote in a research note.

"It's too low", Odey, a former son-in-law of Murdoch whose eponymous hedge fund is a Sky shareholder, said of the sweetened Fox offer. Murdoch has agreed to sell Fox's entertainment assets including its stake in Sky to Disney, though Comcast is weighing another counteroffer for the Fox portfolio.

Regulators are concerned that Fox's ownership of Sky News would give Murdoch and his family too much influence over United Kingdom media.

The fight for ownership of Sky is playing out against the backdrop of Disney and Comcast's battle for a raft of Fox assets, including Fox's current 39% stake in Sky. News Corp., which is controlled by the Murdochs, withdrew its bid for Sky soon after.

"Today's Fox bid is unlikely to be the end game as we see a final Sky deal outcome at well over 15 pounds per share", said managing partner Michael Wegener. The opposition has not completely subsided despite the plan to spin off Sky News.

Related news